Submission Number: 211
Date Received: 25/5/2012
Submission
to
House of Representatives, House Standing Committee on
Regional Australia
Inquiry into the use of ‘fly-in, fly-out’
(FIFO/DIDO) workforce practices in regional
Australia
Submitter:
David Smith, National Secretary
Organisation:
Australian Services Union
Address:
116 Queensberry Street
Carlton South, Victoria, 3053
Phone:
03 9342 1400
Fax:
03 9342 1499
Terms of Reference
Inquire into and report on the use of ‘fly-in, fly-out (FIFO) and ‘drive-in, drive-out’
(DIDO) workforce practices in regional Australia, with specific reference to:

the extent and projected growth in FIFO/DIDO work practices, including in
which regions and key industries this practice is utilised;

costs and benefits for companies, and individuals, choosing a FIFO/DIDO
workforce as an alternative to a resident workforce;

the effect of a non-resident FIFO/DIDO workforce on established communities,
including community wellbeing, services and infrastructure;

the impact on communities sending large numbers of FIFO/DIDO workers to
mine sites;

long term strategies for economic diversification in towns with large FIFO/DIDO
workforces;

key skill sets targeted for mobile workforce employment, and opportunities for
ongoing training and development;

provision of services, infrastructure and housing availability for FIFO/DIDO
workforce employees;

strategies to optimise FIFO/DIDO experience for employees and their families,
communities and industry;

potential opportunities for non-mining communities with narrow economic
bases to diversify their economic base by providing a FIFO/DIDO workforce;

current initiatives and responses of the Commonwealth, State and Territory
Governments; and

any other related matter.
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
Table of Contents
About the Australian Services Union ....................................................................... 4
The ASU experience with ‘fly-in, fly-out’ (FIFO) and ‘drive-in, drive-out’ (DIDO)
workforce practices in regional Australia ................................................................. 7
Airlines and transport employment ...................................................................... 7
Local Government and regional employment ...................................................... 9
Social and Community Services (SACS) community infrastructure ................... 14
Recommendations ................................................................................................ 19
Conclusion ............................................................................................................ 23
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
About the Australian Services Union
1.
The ASU welcomes an inquiry that seeks to identify the impact on
communities sending large numbers of FIFO/DIDO workers to mine
sites. It is important to consider all strategies that can facilitate
FIFO/DIDO phenomenon for employees as well as their families,
communities and industry; and create inclusive opportunities for the
benefit of a sustainable regional Australia. It is also important residents
of regional Australia be able to submit their views to parliament as part
of the parliamentary process.
2.
The Australian Services Union (ASU) is one of Australia’s largest
Unions, representing approximately 120,000 employees.
3.
The ASU was created in 1993. It brought together three large unions –
the Federated Clerks Union, the Municipal Officers Association and the
Municipal Employees Union, as well as a number of smaller organisations
representing social welfare, information technology workers and transport
workers.
4.
Today, ASU members work in a wide variety of industries and
occupations; especially in the following industries and occupations:

Local government (both blue and white collar employment)

Social and community services, including employment services

Transport, including passenger air and rail transport, road, rail and air
freight transport

Clerical and administrative employees in commerce and industry generally

Call centres

Electricity generation, transmission and distribution
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia

Water industry

Higher education (Queensland and South Australia)
5.
The ASU has members in every state and territory of Australia, as well
as in most regional centres. The Union has approximately equal numbers
of male and female members, with some variation of the proportions in
particular industries.
6.
The ASU has always been well placed to observe and comment on the
status of regional Australia on behalf of our members in those
communities and the industries they depend upon. As a nation we contend
that the continuity of regional communities must be secured; that the
answers to address documented decline are common sense: motivate
people to relocate to regional areas. The ASU supports developing
regional Australia through creation of sustainable career opportunities,
working conditions and lifestyle, strong and supportive communities, and
access to services and rewarding jobs.1
7.
The ASU believes the extent and projected growth in FIFO/DIDO work
practices has not been given due consideration and the impact to
Australian society is a worrying decline of cohesive society within long
standing regional communities experiencing the effects of the industry
practice. The ASU believes the regions have and continue to be adversely
affected and asks whether discrete benefits for companies, and
individuals, choosing a FIFO/DIDO work arrangement can continue
unregulated in the face of the pernicious effects and rapidly diminishing
alternative resident workforces within associated regional communities.
8.
Unfortunately, ASU members living in regional communities local to
mining activities report issues underlying an overwhelming failure to
1
McLean, G 2010 , Inquiry into regional skills relocation, ASU National Net, accessed 1 May
2012, <http://www.asu.asn.au/data_man/submissions/asusub-lgregionalskillsrelocation20100416.pdf>
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
consistently provide adequate and sustainable services that ensure
infrastructure and encourage regional development. Local government
employees, their associated contract services employees and employees
working in community infrastructure services such as transport and social
services, all compete to live and work with the FIFO/DIDO mining
workforces. In fact, the opportunities for development that may appear
possible are impaired by unprecedented competition with mining sector for
access to land, existing services, funding jobs and training.
9.
As a consequence, the mining sector has so far failed; also, to ensure
ongoing benefits for all regional Australians and many communities near
mining operations are now hit by infrastructure decay. Due to the lack of
funding and resources for increasing costs of all amenities caused by rapid
population growth of FIFO/DIDO workers, ASU members report a
shocking negative impact on availability and quality of community services.
In 2007, the ASU conducted a survey of Social and Community Services
sector (SACS) workers and some respondents said they could not earn
enough to pay rent and have to move away.2 In some local government
areas in Queensland, the ASU have negotiated agreements way in excess
of non-mining areas for the sole purpose of retaining skilled staff. If much
needed regulation of FIFO/DIDO work practices is ignored for any further
period of time, it will thus be difficult for communities to recover from the
attrition of permanent residents and migration trends away from regional
areas.
10.
The ASU will provide key examples from our membership of the effect
of a non-resident FIFO/DIDO workforce on established communities,
including community wellbeing, services and infrastructure.
2
White, L 2007, Building Social Inclusion in Australia, ASU National Net, accessed 1 May
2012, <http://www.asu.asn.au/media/building-social-inclusion2007-recommendations.pdf>
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
The ASU experience with ‘fly-in, fly-out’ (FIFO) and
‘drive-in, drive-out’ (DIDO) workforce practices in
regional Australia
Airlines and transport employment
11.
Aviation security is a critical issue for the ASU, because it relates
directly to the safety and working conditions of our members. The ASU
is the largest Australian union covering aviation industry workers – with
members in the widest number of companies and activities in the
industry. Our members work for Qantas, Jetstar, Virgin Blue, Regional
Express, Qantaslink, Singapore Airlines, United Airlines, Emirates,
Malaysia Airlines, Thai, Garuda, Cathay, Air Niugini, South African
Airlines, Air France – KLM, Air New Zealand and twenty other overseas
airlines. As well as contractors in the industry like Menzies Aviation
Services and Toll Dnata, and Airfreight companies such as Australian
Air Express.
12.
Safety and training is a key issue for the Airlines industry to regulate
effectively. At regional airports, what were previously 1 or 2 person
ground-handling operations have grown, running teams to accommodate
the steadily increasing flow of FIFO passengers. Regional airports that are
established regional hubs need critical programs that address delivery of
consistent safety training, updates and refreshers; all of which maintain
airline safety and security around Australia. The ASU is now very
concerned to know what and how ground-handling teams are developed
and what standard of security measures are in place for growing regional
airports. For example, what security is there for on loading bags; also, how
are ground-handlers trained? How is the airport infrastructure maintained
and what plans are there for upgrading airports experiencing increases to
traffic. The need is greater than ever and ensuring effective training
programs will support employment at a greater number of regional
airports.
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
13.
The ASU’s concerns about safety extend to matters of airport security
and are well documented in previous submissions.3 Our members have
identified clear vulnerabilities in airport security; which urgently need to be
addressed. Aviation employees stand to lose the most when security
breaches occur. It is the front line staff that can lose their lives or
livelihoods when security measures fail. Employees and unions are
important allies in the effort to secure our airports. It is those on the ground
who on a daily basis see the real efficacy of our safety and security
arrangements.
14.
The rapidly increasing FIFO passengers – all of whom are travelling
through terminals in dire need of aforementioned upgrades – also, poses
an alarming need for a review of airport security and safety measures
around the country. To meet the needs of the FIFO traffic, RPT regional
towns and the workers become exposed to delays and safety and security
breaches. For example, Perth Airport is a 24 hours/day 7days/week
Commonwealth airport in the City of Swan, WA. FIFO workers dominate
the dual domestic and international passenger terminal, waiting for their
flights out of the city at regular times of each day, causing pressure at
busy periods. Ground-staff are at the frontline experiencing those
pressures. Traffic to and from Perth Airport due to FIFO passengers
stretches staff on the ground and many work shifts and receive over-time
payments as well as other associated penalties.
15.
Flights for FIFO workers now compete with the Regular Passenger
Transport (RPT), freight and tourism sectors, for access to reliable
transport hubs. Gladstone Airport, QLD is a good case in point servicing
without significant airport upgrade approximately 136,000 additional
passengers in the first year operators flew the recently established
3
Most recently: White, L 2009, ASU Submission – Inquiry into the adequacy of aviation and
maritime security measures to combat serious and organised crime, ASU National Net,
accessed 1 May 2012, <http://www.asu.asn.au/data_man/submissions/asusub-aviationsecurity061009.pdf>
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
Brisbane and Gladstone route.4 Gladstone is not the busiest airport
experiencing increased traffic. Routes flying FIFO traffic out of Brisbane
and Perth Airports are each year, edging closer to a million passengers
per annum. The impact of such a traffic increase is inevitable delay for
RPT and delivery of essential freight and services destined for remote and
regional areas.
16.
Even the DIDO work arrangement has flow-on effects for road
transport safety made critical by one of the essential differences between
the contracted and the salaried work arrangement. The welfare of all
drivers using roads near mines is at risk. The preference of the mining
sector to keep contract employment high in their mix of work arrangements
leads to staff taking greater risks travelling to and from mine sites. In
contrast to starting shift at the mine site, salaried workers tends to be paid
for their travel time to and from shift. The situation on the Peak Downs
Highway is a good case in point. Mining sector DIDO workers headed for
the Bowen Basin coal mines drive in from Mackay on the coast to
Clermont through Moranbah. The drive takes more than 6 hours along a 2lane road that has not been upgraded for traffic beyond its aim to service
smaller communities in the 60s. A death about every 2 weeks and the type
of heavy DIDO traffic is well recognised by the community as an priority for
government to provide urgent transport infrastructure upgrades.
Local Government and regional employment
17.
Lack of housing and affordable cost of living in mining areas has
become an entrenched issue for Local Government staff. All members
affected by this topic are disheartened and angry that the cost of living
is so high in their towns. The common opinion reflected is that the
local governments, private home owners and business owners are
utilising the mines to their advantage for monetary gains by charging
4
Bureau of Infrastructure, Transport and Regional Economics 2011, Air transport service
trends in regional Australia (2011 update) Report 130, Australian Government, accessed 1
May 2012, <http://www.bitre.gov.au/publications/2012/report_130.aspx>
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
excessive rates, rents and prices. Employing new staff and retaining
existing staff who can no longer keep up with cost-of-living expenses,
is problematic for Councils.
18.
The ASU recently completed negotiations for an Enterprise Bargaining
Agreement 2011 (EBA) with Isaac Regional Council (IRC). IRC have staff
situated in Carmila, Coppabella, St Lawrence, Dysart, Middlemount,
Clermont, Moranbah, Nebo and Glenden. The IRC covers an area of
58,862 square kilometres; contains an estimated resident population in
2006 of 20,443. IRC’s statistical snapshot shows that they modestly
expect annual population growth of 2% to continue to until 2031.5 Staff
turn-over is excessively high. Current vacancies for IRC on Wednesday
2nd May 2012 were 120.
19.
Housing matters are one issue contributing to skills shortages. Housing
is either not available or simply costs too much; a fact that was recognised
and acknowledged by IRC’s CEO, Mark Crawley at recent negotiations. A
single outside worker receives $40,654.74/annum for the first 6 months;
which equates to approximately $1,347/fortnight net pay. Average range of
rental prices start at about $900/week for a 2 bedroom flat to over
$1,700/week for a simple 2 bedroom house and anywhere from
$3,200/week for a comfortable 4 bedroom house of greater standard. In
negotiations for the 2011 Enterprise Bargaining agreement with the IRC,
the members of all Unions included claims for subsidies and/or extending
Salary Sacrifice options available to staff who do not rent council housing
(including rate payers), and; housing availability for staff non-resident in
the council community. (At the time there were 10 employees living
outside community without housing.)
20.
The housing situation in the IRC area has been exasperated by the
lack of an appropriate housing policy. ASU members have been calling for
5
.id Informed Decisions 2011, Isaac Regional Council Community Profile, .id Consulting Pty.
Ltd., accessed 1 May 2012, <http://profile.id.com.au/Default.aspx?id=405&pg=210>
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
a housing committee to be established to ensure that housing is issued on
an unbiased basis. The ASU has pursued policy for over 18 months and
the council has continued to advise the Union that a housing policy is
being prepared. In the meantime council housing continues to be unfairly
issued. A few examples of the incidents that have occurred in IRC:
i.
Council asked a lower level employee to move out of their home to be
able to house a higher level/skilled employee as an incentive to remain in
Moranbah.
ii.
A council employee currently pays $700/week but due to an increase in
rent to $1,700/week, the employee resigned and relocated.
iii.
Two council employees living in a de facto relationship acknowledge 1
works just to pay the rent.
iv.
A single council employee lives in a 4 bedroom council house whilst a
family with children has no housing.
21.
The unavailability of housing has repercussions on the community as a
whole. Non-resident FIFO/DIDO workforces are often housed in local
motels. Motels are paid to set-aside rooms for FIFO/DIDO employees and
vacancies are released after a set time on any given day. The practice can
create a dilemma for a new local government employees aiming to migrate
in from out of town. Securing accommodation for a short term stay is
practically impossible at short notice. Motel owners recommend reserving
accommodation at least three months in advance.
22.
The issues the IRC face are similar throughout the mining area and the
sentiments of staff are echoed wherever ASU Union officials visit –
especially when the topic of council rates is discussed. Here is an email
from a Circulation and Interlibrary loans Officer – Moranbah, employed by
Isaac Regional Council:
Thank you for giving me the opportunity to express my concerns
about the housing in Moranbah.
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
I have enquired about the National Rental Affordability Scheme
(NRAS), at present there are three houses available in Moranbah
under this scheme. Due to the income requirements of this scheme I
am unable to apply. The maximum income for a single person to
apply is $44,000 per annum at the time of application. After tax this is
approximately $716 per week. The cost of rent for the properties
through NRAS is $400 per week. Once rent is deducted from the
weekly income it would leave approximately $316 per week. As a
local government employee there is compulsory superannuation to be
deducted weekly, based on an annual wage of $44,000 this is would
amount to $50 per week. Taking compulsory superannuation
deductions into account it would now leave approximately $266 to pay
for living expenses. The average Australian person would consider
living expenses to include the following: electricity, content insurance,
car registration, car insurance, medical insurance and food. Based on
an average income of $716 per week and taking into account the rent
and cost of living in Moranbah, this is an unrealistic living situation.
I have also enquired about ELAM housing at the Moranbah office. The
income requirement for this housing scheme for a single person is
approximately $38,000 per annum.
Due to the rental issues and increased cost of living in a mining
community like Moranbah, individuals like myself earning a national
award wage (not mining) are forced to resign from their employment
and relocate elsewhere. This leaves gaps in all areas of the service
sector eg: Police, Local Government, Post Office, Banks, Education,
Retail Industry and Hospitality industry.
Without affordable housing in a mining community like Moranbah, you
will continue to see individuals and families relocating or forced to
separate. This eventually results in business within this service sector
either closing down or relocating also.
At present I am working for Isaac Regional Council in Moranbah,
where the position I hold is Circulation and Inter Library Loans Officer
at Moranbah library. My annual wage of approximately $50,000 per
annum does not allow me to apply for NRAS housing or
ELAM/Queensland Housing Commission housing. At present there is
no council housing available, I have been on the waiting list for
approximately 18 months. In the past 18 months I have been staying
with family. However this situation has changed and they have
relocated. This now leaves me without housing, unable to apply for
affordable housing, and unable to pay the market rental prices. I have
temporary accommodation for one month after which I will be forced
to resign and relocate if I am unable to obtain affordable housing.
This is not only my situation, it is also the situation for many other
people in this town, until the affordable housing/rental issue is truly
addressed more families, individuals and businesses will follow in the
footsteps of Bollywood, Kardoe, Habitat Living and the Dentist i.e.
closing their doors and leaving town.
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
23.
An immediate consequence of the lack of temporary accommodation in
the towns is that visitors will travel through the towns without staying,
keeping tourist expenditure to a minimum and stagnating tourist
economies. Another impact to tourism is that the non-resident FIFO/DIDO
workforce tends to spend their income elsewhere: not in the community
they have come to work from. Therefore, many local businesses do not
survive for more than a year; the hospitality/alcohol industry
notwithstanding. The resultant decline of job opportunities outside the local
government and mining industries for future generations will begin to
devastate the whole community in the long-term.
24.
Councils; also, are having to respond to gaps in essential community
services such as medical facilities; which have been kept at their minimum
and seriously lack the capacity to service the influx of FIFO/DIDO
workforce into the mining towns. Nebo has medical facilities but no doctor.
Moranbah currently does not have a dentist, the closest being Emerald or
Mackay (both about 200 kilometres distant).
25.
An ever burdensome challenge persists for local government to retain
skilled employees in mining areas as both employer and employee
become less able to meet the financial capacity required to compete with
mining sector. Councils rely on potential employees that desire a different
work and family lifestyle to the conditions of the mines. A contracting-out
clause commonly included in council EBAs, is commonly utilised for
mining areas because a council is unable to recruit sufficient local people
to fill vacant positions and have to source labour from business based
outside the local region. In IRC essential areas of service to the
community that are currently contracted out and the problematic
implications that are associated are, as follows:
i.
The Technical and Civil road department are down from 10 to 3 in staff
numbers. The workgroup consequently maintain roads at a significantly
reduced service level. Unable to hire mechanical staff to service council
equipment further increases down time because mechanics are sourced
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
externally and insufficient numbers of mechanics are based in the local
area.
ii.
Parks, maintenance and mowing department; also, has insufficient staff
and in peak wet weather seasons the council cannot hire contractors to
keep-up with the work load.
iii.
Sewerage treatment upgrade is behind as there was not enough
accommodation for contractors hired for the development works. Council
resorted to building a small donger village to house skilled employees.
The conditions in the donger village are sub-standard; for example,
kitchen facilities consist of a kettle and a microwave.
Social and Community Services (SACS) community infrastructure
26.
Australian communities depend upon provision of social and
community services such as youth refuges, women's refuges, family
support services, disability services, community legal centres,
employment and training services, Community Employment, Training
and Support Services (CETSS) like Job Futures, Aboriginal
organisations, community or neighbourhood centres, family day care
centres, community transport services, home and community care
services, environmental organisations, aged pensioners and
superannuates associating community sector peak bodies, migrant or
ethnic services and aid agencies. Large employers in the SACS
industry include the Catholic Church (including St Vincent de Paul),
Anglicare, The Smith Family, Mission Australia, Uniting Church,
Relationships Australia, Amnesty International, Oxfam, ACF and
Greenpeace.
27.
Some of the most remote communities where we have members in the
SACS industry are in close proximity to mining operations. For example, in
Western Australia (WA) the ASU has a close association with the work of
The Pilbara Association of Non-Government Organisations (PANGO). Our
members report that the influx of non-resident FIFO/DIDO workforce to the
Pilbara region has put the cost of rentals in some places to $2000.00 per
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
week; accommodation is inadequate for (mostly) indigenous people who
come in to Port Hedland to attend Hedland Health Campus public hospital
and people sleep outside rather than in the hostel accommodation
provided. Similar to the example of the IRC area tended, an issue that has
come to the attention of the ASU is the number of union members saying
that they could only afford to work in the SACS sector if their partner had a
job with the mining companies and was provided with a house. Meetings
with some of the refuge employees provide some disturbing information
about cycles of community violence associated with living amongst the
FIFO/DIDO workforce, such as “I can put up with the violence and bashing
because a] I can't afford to move out and b], he will be gone for a few
weeks in a couple of days.”
28.
Remarkable increases to costs-of-living seriously threaten the service
delivery capacity of the SACS sector in the Pilbara, along with lack of
suitable staff to deliver the services. The average wage in the NGO sector
is about $50 to $55,000/annum; while rents continue to soar past the
$2,000/week rate and heading towards $3,000/week; average house
prices for a standard 3-bedroom unit are more than $700,000 and climbing
up to the ”magic million” mark. The massive increase in FIFO/DIDO
workforce into Pilbara towns has indirectly placed undue pressures on the
economy and infrastructure of the towns, and indirectly impacted
negatively on the ability of the SACS sector to recruit and retain an
effective workforce.
29.
The Pilbara Association of Non-Government Organisations (PANGO) is
the peak body for the community service sector in the Pilbara region of
WA, delivering those health, education, child care, Aboriginal services,
legal and family services, substance use, homeless, family violence,
sexual assault, women’s and relationship services amongst others, directly
to the community, with the majority of their client base (more than 85%)
being Aboriginal.
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
30.
It is obvious to PANGO that the lack of land release by the WA State
Government, whether through Landcorp or the WA Department of
Housing, combined with the selling off of some 140 State houses by
Homeswest to the private market, has driven land and house prices up to
prices unaffordable to the individuals’ not attracting mining salaries. While
the WA Department of Housing continues to sell off State houses with no
building program, millions of dollars gained in a joint venture with Jaxons
Construction has not come back to the Pilbara. Local people, mostly
Aboriginal people, live in tents as well as makeshift camps and cars –
under the shadows of 1,000-room plus FIFO/DIDO workforce camps.
31.
Chronic overcrowding of homes occurs in town. Families share what
roof-space there is available with up to 16 people living in a three-bedroom
house. Some FIFO/DIDO workers; also, cram into company-leased or
purchased homes (many of which were previously Homeswest units). The
direct consequences of a housing crisis being felt around the community,
includes deteriorating health issues (for example, some dialysis patients
still camp in the bush); substance use issues; family violence; family
breakdowns and children being forced to live in over-crowded and unsafe
environments.
32.
The unacceptable prices rises in land and housing costs – up more
than 500% in the last decade – has forced many locals and locally born
people and families out of their homes and home-town. Some have
reverted to FIFO/DIDO themselves in from Perth and other eastern states
because house prices and costs are a third of Pilbara prices. For example,
a land and house package in the northern suburbs of Perth; 3-bedroom
and bathroom ready to move in for $340,000, compares attractively to a
transportable module in the Pilbara for $970,000.
33.
At the present point in time, the WA State Government has totally
ignored the recommendations to alleviate the housing crisis, and appears
quite relaxed about allowing prices to rise to their current levels. An
example in Newman advertised in late March 2009 shows the depths the
ASU Submission
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Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
land situation has gotten to: A 259 square metre block within a
development called “Kurra” is on the market for $390,000 with the
developer recommending:
Lot 145 is 259 square metres of land, with a 12.94 metre frontage and
a depth of 20 metres. This type of block will suit a four or three
bedroom property. However, the type 19, [The type 19 possesses 4
self-contained 1x1’s] is the best way to maximise the potential of the
block.
Recently, a 4x4 with a single living area rented for $3,500/week. The land
is listed at $390,000. If not-for-profit housing initiatives are not adopted,
the type 19 development will obviously come into the other Pilbara towns
including Port Hedland and Karratha where more FIFO/DIDO units will be
encouraged into residential areas.
34.
The ASU believes that the exorbitant land and housing costs for the
community and business in the Pilbara, drives the ever-expanding and
thriving FIFO/DIDO operations for industry and business, to the detriment
of the very social fabric of the Pilbara communities, which have been more
than 150 years in the making, and tens of thousands of years for the
Aboriginal peoples. South Hedland currently hosts the Club Hamilton
FIFO/DIDO camp for the FMG FIFO/DIDO workers in Hamilton Road,
backing on to the Marie Marland sports reserve. Currently this camp is
being expanded with double storey “dongas” being installed to
accommodation hundreds more workers, while across the sports reserve
on the Southern boundary ESS is building another camp for up to 1200
FIFO/DIDO workers.
35.
A number of other FIFO/DIDO camps are believed to be planned for
South Hedland, while the Town of Port Hedland have just released for
public comment a Draft TWA (transitional workforce accommodation) and
FIFO/DIDO Strategy for the Town. Even the Town of Port Hedland local
Shire has made a request to the Minister for Land to change the vesting of
a large parcel of land on the north boundary of Marie Marland sports
reserve, vested in the Shire for the use of “Recreation”, to “Transitional
ASU Submission
17
Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
Workforce Accommodation” to house FIFO/DIDO workers. The local
community and in particular the sporting community has seen this request
to the Minister for FIFO/DIDO land as a direct threat to recreation and
sports in the community, and mounted a campaign against the move,
attracting some 220 signatures in a formal petition opposing this venture,
which was presented to the Mayor at a formal Council meeting, as well as
to the State Minister for Land.
36.
FIFO/DIDO arrangements have had a direct negative impact on the
sporting fraternity of Port Hedland, with some sports declining in numbers
while the reducing numbers of volunteers in coaching, umpiring and
administering sports is placing undue pressure on those long-term
administrators and volunteers.
37.
Another very real concern is that the FIFO/DIDO situation is driving a
wedge between the community and the FIFO/DIDO workers; workers who
have access to top-class living quarters with air-conditioning; access to
free transport to and from work and to community facilities; also, free
access to otherwise public facilities such as fitness centres and pools;
laundry services and 3 square meals each day at no charge. That is a
lifestyle undisguised in its contrast to some sections of the resident Pilbara
community who have struggled each and every day, particularly the
aboriginal community – living in tents, cars, caravans and sea-containers,
or overcrowded houses. There is no regular passenger transport system
servicing the whole community to and from work, shops, facilities, training;
fees to join clubs and fitness centres are out of reach, and; some families
cannot afford basic food, nor power to running an air conditioner.
38.
The ASU recognises that FIFO/DIDO arrangements are required in our
remote regional areas for construction projects, however the major mining
companies have been reverting to more and more “operational
FIFO/DIDO” arrangements, with BHP Billiton Iron Ore moving entire
operational sections in the Pilbara to FIFO/DIDO arrangements, while
FMG Ltd has publicly stated that the cost of residential workforce is three
ASU Submission
18
Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
times higher than FIFO/DIDO and announced they (FMG) will be
expanding their FIFO/DIDO operations in Port Hedland by more than
300%.
Recommendations
39.
Encourage mining interests to invest regionally. In the ASU’s
experience; for example where Energy Authorities are based, we have
seen secure solid regional employment growth and other industries
spin off from that regional growth. Of note is the capacity that has
allowed Essential Energy (NSW) to substantially prioritise regional
employment and remain a focused, true regional employer. Its 8
regional offices office have been constructed in large regional
locations, including the current head office in Port Macquarie, NSW
providing infrastructure and jobs to over 1,300 with a total state wide
workforce of 4,500 plus contractors and its relationship with
contestable work have all benefited regional Australia.6 The deep and
unsustainable pressure on the infrastructure servicing regional
Australia, as well as provisions for ensuring security and safety to and
from mine sites makes an undeniable and strong framework with which
the Australian Government can act and draw on responsibility of the
mining sector to make greater returns back to the communities and
appropriately planned regional investments.
40.
In response to the immediate needs of Pilbara residents, the ASU
supports recommendations in relation to community and affordable
housing, supporting a State Government Report – Feasibility Study for
Affordable Rental Property in the Town of Port Hedland financed by the
Former WA Department of Resources and Development and produced by
Stamfords Consultants Perth.7 A community-controlled not-for-profit
6
McLean, G 2012, Draft Energy White Paper 2011 Consultation, ASU National Net, accessed
1 May 2012, <http://www.asu.asn.au/data_man/submissions/asusub-draft-energy-whitepaper2012-04.pdf>
7
Stamfords Advisors Consultants, 2008, Feasibility Study for Affordable Rental Property
ASU Submission
19
Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
housing association managing community housing investment in
partnership with the State Government. Key implementations
recommended are, as follows:
i.
The State Government immediately implement the recommendations of
the Feasibility Study for Affordable Rental Property in the Town of Port
Hedland in partnership with the State Government; act immediately to
develop and release appropriate residential and commercial land within
12 months;
ii.
Negotiate with the four Pilbara councils through the Pilbara Regional
Council (PRC) to ensure equitable Pilbara mining royalties are returned
back to the Pilbara region to assist in capacity-building the communities,
specifically in the retention and housing of community service workers to
enable continuity of service delivery.
iii.
Finally, the State Agreement Act be negotiated for modification to ensure
that operational FIFO/DIDO is utilised only when residential status is a
distinct disadvantage to either party.
41.
The ASU calls on the Australian Government to prioritise such housing
and development initiatives that encourage migration into communities
and make it possible to live there long-term. The example of Trundle is a
case in point where community members agreed to strategically entice
people to live in Trundle NSW, and the Rent a Farmhouse Scheme was
developed. The contrast to mining communities where it is not so much a
case of enticing people to come to the town as it is necessary to find ways
to draw diverse groups back to those regions permanently, merely
necessitates a circumstance specific scheme. A key factor to focus on is
recognising the benefit of community consultation with the resident
community.
in the Town of Port Hedland, Community Housing Coalition of WA, accessed 1 May 2012,
<http://www.communityhousing.com.au/resources/Appendix%201%20%20Final%20Report%20Feasibility%20of%20Affordable%20Rental%20Property.pdf>
ASU Submission
20
Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
42.
The ASU recommends the Federal Government address the conflicting
outcomes from 2 areas of planning policy: the conflict between sustainable
regional development planning and national resources management. The
differences in circumstances of shrinking populations in regions as well as
growth of urban communities, and must drive changes to layers of
governance across Australia. The differences highlight 2 serious
consequent issues of policy that effectively stagnate responses needed for
remote and regional Australians:
i.
Firstly, planning objectives are approached to meet needs of who lives
where but in the case of FIFO/DIDO regions, need is driven by who is
working where and their proximity to established communities. The mining
sector intentionally places FIFO/DIDO housing proximal to regional areas
so they do not have to pay to provide community services. The effect is as
demonstrated: the region loses resident population who cannot afford
inflated costs of living nor to go without essential services like road
maintenance; when regions lose resident population local area services
suffer; which places meager services under further pressure from
increasing non-resident FIFO/DIDO populations. Also in effect here is the
closing-out of more remote communities that are satellite to traditional
regional hubs. The inadequacy of current planning initiatives to address
that distinct difference between urban and regional planning of, in the
main, physical distance to services is a direct cause contributing to the
decline in service provision for remote and regional communities.
ii.
Secondly, the imbalance between benefits State governments draw from
mining projects and the lack of requirement to re-invest in the regions, has
allowed mining interests to operate in competition with sustainable
regional development aims of the Australian Government. State
Governments appear to have accepted monetary benefits of mining boom
but washed their hands of contributing responsibly to regional Australia.
Compounding that competition between Federal and State Government
aims is the inability of Local Government to raise revenue through means
other than raising council rates collection and thus causing the so-called
2-speed economies of FIFO/DIDO work arrangements alongside
residents, who are losing their way of life.
ASU Submission
21
Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
43.
ASU recommends a response to the increasing preference of the
resources sector for contract labour. Whilst comprehensive evidence is not
collected, employment of contract labour reportedly dominates the mining
industry. FIFO/DIDO work arrangement in WA surpassed 56% of the
mining sector workforce in 2009. The mining sector argues that contract
labour is integral to specialisation needs of the industry as well as costefficiency measures. If you look at the historical facts; however, most
mining interests have not moved-on from the regions; since the 70s and
continue to operate today in locations such as the Pilbara and Moranbah.
It is difficult to understand given the on-going nature of projects, the need
for a dominance of contract labour but primarily, the freedom of utilising it
at the expense of the economies of mining regions. The impact of
FIFO/DIDO employment in regions is in effect a kind of colonisation; an
economy that disproportionately allocates ‘fly-over’ benefits from
resources management, away from the host community and creates
historic upheaval of lifestyle for residents. Understanding over-use of
contract labour within the mining sector and better regulating its use as an
employment contract would go some way to reversing the impact of the
FIFO/DIDO populations on regional Australia’s way of life.
44.
The consequences of repeat contract to the socio-environment and
therefore, longevity of residency in some regions must also be addressed.
The ASU has previously made the following recommendations to
government. Direct funding from the federal government to local councils
is urgently needed. Regional Australia is an area of national significance
and funding at to local levels of government is needed to reverse corrosive
trends and rebuild local infrastructure and services. It is critical to attract
families to remain and return to regional communities. For example, the
provision of family friendly workplace conditions such as varying types of
employment, are essential. Families are the supporting structure of any
community, whether friends and families live in the region or a new
resident moves to a location without individual social support. Families
ensure diversity of a community and continuity of essential services that in
turn address employment choices and assist with retaining young
ASU Submission
22
Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia
residents who will in their turn perpetuate the community. The government
must address and re-balance the competition with the mining sector for
land and services of our regional communities.
Conclusion
45.
A response to the adverse effect of the FIFO/DIDO work arrangements
utilised by a booming resources sector, upon the perpetuity of regional
Australia is urgently needed and must address the proportionately
negative benefits to resident communities coexisting with FIFO/DIDO
workforces; deteriorating culture of regional communities; current
limitations of local revenue that can be dedicated to local development;
pressures on existing transport infrastructure; and the socioenvironmental risks of ongoing, long-term exploration.
46.
Market forces have failed to impress firms to meaningfully invest in the
regions and their supporting infrastructures. Flexibility has allowed the very
fabric of Australian working life to be revolutionised by the mining sector. It
is time for a reform agenda that conducts thorough research into the
issues and winds the resources sector into line within other Australian
workplace practice.
ASU Submission
23
Inquiry into the use of ‘fly-in, fly-out’ (FIFO/DIDO) workforce practices in regional Australia